Reebok To Shift Asia-Africa Headquarters To Delhi

The $3.5bn Reebok Interna-tional has decided to shift the regional headquarters for its Asia, West Asia and Africa operations from London to Delhi.

In a major restructuring exercise, India will become a key centre for the companys sportswear operations. Apart from the sub-continent, Reeboks Delhi office will also oversee operations in countries like Israel and Saudi Arabia and African markets.

Reebok executives declined to comment on the companys plans. However, industry sources said the change was prompted by Reeboks belief that these regions could be more effectively and economically controlled from India than from the UK. The move also demonstrates Indias growing importance as both a market and sourcing centre for shoes.

 

Apart from its Asia, West Asia and Africa division, Reeboks other key divisions include the North American division, the European division and the Latin American division.

Reebok already has a joint venture with Phoenix Overseas, Reebok India, in which it has an 80 per cent stake. The company recently received the Foreign Investment Promotion Boards nod to temporarily increase its share in Reebok India to a maximum of 95 per cent.

In its application to the FIPB, Reebok had proposed to increase its share in Reebok India from 80 to 95 per cent for three-five years. Reebok Internationals share would, thereafter, revert to 80 per cent, the application stated.

Reebok International plans to increase its stake in Reebok India through its wholly-owned subsidiary, Reebok Mauritius.

The Department of Industrial Policy and Promotion has supported the proposal, on the condition that the proposed dis-investment by Reebok International would be implemented within three years. Reebok India does not manufacture shoes on its own in India. The company sources its products from other companies, including Phoenix Overseas.

In India, Reebok is trying to create a performance shoe segment, which has hitherto been non-existent. Performance shoes are customised for different sports. For example, Reebok has specific shoes for cricket, basketball, football, walking, jogging and so on.

Reebok has already introduced some of the 65 new models of international performance sports shoes which it intends to sell in India, and over 100 models of sports apparel and accessories that are customised for use in various sports and fitness activities.